Agenda: EFAB Conference Call

Modified by GS CO₂ team

January 7

Actions to Date

Two Initial Tasks Assigned To EFAB

(1) Augment the closure and post closure requirements in the UIC CO₂ NPRM with the RCRA experience. Develop recommendation for financial assurance for UIC Class VI GS wells.

(2) Address Develop principles for Long Term Stewardship of Geologic Sequestration wells.

Task 1: UIC/RCRA Closure-Post Closure Financial Assurance for Class VI wells

- Review NPRM Class I UIC Financial Responsibility requirements at 40 CFR 144.60 Subpart F requirements for closure and post closure.

- Identify potential gaps between a RCRA and UIC regulatory regime improvements and gaps

- Identify actions to fill gaps

- Review the “Omnibus Authorities” section of RCRA which allows for perpetual care, and make recommendations for Class VI Financial Responsibility guidance.

- Analyze “no additional action under RCRA” option & “Stewardship Only”

Considerations

- Class 6 VI criteria could migrate to Class 2 II.

Task II: Long Term Stewardship for UIC Class VI wells

Phase I: Development of governing principles for long term financial stewardship

- Delineate Review alternative models for long term financial stewardship

· RCRA

· RCRA Omnibus Authorities

· Trust Fund

· Price Anderson

· Other:

* Regulation Implementing the Support Anti-terrorism by Fostering Effective Technology Act of 2002. Final rule. June 8, 2006. 6 CFR 25. Published in 71 FR, No. 110, page 33147 et seq. June 8, 2006.

* National Flood Insurance Act of 1968, 42 USC 4001 et seq., Section 4001(a) and (c); 4011(c); and 4016(a).

* Trans-Alaska Pipeline Authorization Act of 1973 / Oil Pollution Act of 1990.

* Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 USC 9601 et seq., Section 111.

* The Interstate Oil & Gas Compact Commission (IOGCC). 2007. Stewardship approach.

* World Resources Institute Issue Brief: Liability and Financial Responsibility Frameworks for Carbon Capture and Sequestration. (WRI, 2007).

* International Risk Governance Council (IRGC) 2008. Regulation of Carbon Capture and Storage, Policy Brief for International Risk Governance Council.

- Macro analysis and comparison of alternative mechanisms

- Examine the risk profile for carbon sequestration

- Assess approach for estimation

Phase II: A Specific recommendation Suggested guidelines for financial stewardship

- Assessment of benefits and costs of use of specific elements from alternative models or portions of alternative models for Geologic sequestration.

- Provide a statement of relative merits describing the best elements of alternative models; and need for new approaches to alternative models (if appropriate).

- Publish a recommendation in Federal Register for comment Solicit input on principles / recommendations from the public (e.g. OGWDW’s NODA or Final Rule).

Considerations

- The failure to have a long term liability scheme in place reduces significantly the probability that climate change programs will be implemented

- US firms have the option of shipping carbon dioxide to OPEC countries for oil recovery operations

References (see attached compilation of available resources related to Geologic Sequestration of CO₂: Financial Responsibility and Long Term Liability of).

Task 1: UIC/RCRA Closure-Post Closure Financial Assurance for Class VI wells

- Geologic Sequestration NPRM

- Carbon Sequestration Website

- Financial Assurance Website

- Financial Assurance Requirements

- RCRA Omnibus Authority

Task 2: Long Term Stewardship for UIC Class VI wells

- Stewardship Options

- GAO on Carbon Sequestration

- On Leakage From Carbon Sequestration Sites

- Congressional Research Service: Policy Issues Carbon Sequestration

EFAB Library: Carbon Sequestration